A Study On The Effect Of Trade Facilitation And FDI To The Belt & Road Countries' Total Factor Productivity

China's economic growth tends to slow down since 2011.Relying on factor input and investment-led growth model is unsustainable.The contradiction between insufficient supply of effective labor force and deepening of capit al has resulted in the decline of potential output.This means that optimizing supply-side allocation,improving total factor productivity(TFP)and increasing potential output are the long-term strategies for sustainable development.The strategy of " The Belt & Road " strategy conforms to the need of economic transformation in the optimization of domestic factor allocation and the adjustment of industrial structure.With the development of world economy,international trade and international investment ar e closely related to economic development.The implementation of trade and investment facilitation,expansion of opening up and protection of foreign investment also rose to the height of national strategy in the report of the Nineteenth National Congress.In this context,from the perspective of international trade and foreign investment,this paper comprehensively discusses the mechanism of trade facilitation,FDI and its interaction on TFP,which has certain reference significance for building trade facilitation facilities,optimizing industrial layout and promoting sustainable development.First,this paper adopts the DEA-SBM model and Malmquist total factor productivity index.Based on the 2005-2014 national panel data,we calculate the total factor productivity of the 45 sample countries involved in the " The Belt & Road " strategy.The results show that TFP growth rate has improved.Among them,the growth of TFP in middle-income countries is faster,but the technological progress in high-income countries is slightly faster than that in middle-income countries.Secondly,the evaluation index of trade facilitation is constructed,and the entropy method is used to assign the value.The results show that the degree of trade facilitation has obvious economic relevance and regional differences.Then,this paper uses the individual time-fixed effect model for empirical analysis.The main conclusions are as follows:(1)From the overall regression results,international trade and investment have complementary promotion relationship,trade facilitation and FDI has played a positive role in promoting TFP.(2)According to the regression results of the sub-income sample,trade facilitation has different internal influence paths on the growth of TFP in different inco me countries.For high-income countries,improving the level of trade facilitation significantly improves technological efficiency,while for middle-income countries,the level of trade facilitation significantly promotes technological progress.Specifical ly,for high-income countries,with the increasing degree of trade facilitation,FDI has played an important role in promoting TFP,especially technological efficiency;and FDI has also significantly enhanced the improvement of trade facilitation on TFP,e specially technological efficiency.For middle-income countries,the interaction item significantly promotes technological progress,which in turn promotes TFP growth rate.(3)From the regression results of the indicators of trade facilitation,there are s till varying degrees of trade barriers in the countries along the belt,so the efficiency of commodity circulation plays a limited role in the growth of TFP.Port efficiency,institutional environment and e-commerce have positive effects on TFP.Finally,the paper puts forward policy suggestions from three aspects: establishing the coordination mechanism of foreign trade and investment,improving the efficiency of commodity circulation and optimizing the industrial layout of foreign investment.